- Release Date: 21/12/15 10:21
- Summary: S/HOLDER: ALF: Sale of small shareholdings
- Price Sensitive: No
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ALF 21/12/2015 10:21 S/HOLDER NOT PRICE SENSITIVE REL: 1021 HRS Allied Farmers Limited S/HOLDER: ALF: Sale of small shareholdings The following letter is being sent to Allied Farmers Limited's (ALF) small shareholders today: Dear shareholder(s) Allied Farmers sale of small shareholdings Allied Farmers appreciates the support of its shareholders, but is aware that it is difficult for many small shareholders to sell their Allied Farmers' shares, as they either do not have a share broker, or the cost of brokerage is disproportionately high relative to the value of their shareholding. In addition, the Board of Directors of Allied Farmers ('Board') is concerned at the ongoing high cost of maintaining a very large share register relative to the very small size of Allied Farmers. Appendix 2 to the NZX Listing Rules prescribes a Minimum Holding of 2,000 shares where the market price of shares does not exceed 25 cents per share. The Board therefore decided to offer shareholders with less than 1,000 shares in Allied Farmers, the opportunity to sell their shares for a small charge without having to pay the market rate for brokerage. EXAMPLE: At 5 cents per share, a holder of 1,000 shares only has $50.00 worth of shares, and a holder of 500 shares only has $25.00 worth of shares. To make the sale process as fair as possible for shareholders, the Board has chosen a sale process that is simple, has a very small cost, and give shareholders an opportunity to opt out. Shareholders who decide to opt-out, and later decide that they wish to sell their shares on market, will need to appoint a broker and pay brokerage. In many instances the amount of the brokerage may exceed the value of the shares. In accordance with Section 4 of Allied Farmers' constitution and NZX Main Board Listing Rule 8.5, the Board hereby gives notice to shareholders that at the expiration of three months after this notice, being 18 March 2016, the Board will, unless shareholders increase their shareholding to more than 2,000 shares, or notify Allied Farmers that they wish to opt-out, exercise the power of sale of individual holdings of less than 1,000 shares in the manner described below. Shareholders with fewer than 1,000 shares will have three months to make a decision in respect of their small shareholdings by choosing one of the following three options: Option 1: Do nothing. After 18 March 2016 a broker, instructed by Allied Farmers, will sell your shares through the NZX (or in some other manner approved by the NZX) and, subject to the costs not exceeding the proceeds, you will receive the proceeds from the sale of your shareholding, less reasonable sale expenses. While the sale expenses will not be certain until completion of the sale process, it is anticipated that this will be approximately $2.50 per shareholder. Therefore, if you hold less than $2.50 worth of shares, you are not likely to receive any proceeds from the sale of your shares. Bank account details can be updated online by visiting the Link Investor Centre at www.linkmarketservices.co.nz Option 2: Increase your shareholding: Purchase additional shares to increase your holding to more than 2,000 shares. The purchase of additional shares must be settled prior to 18 March 2016. You may have to pay any applicable brokerage fees if your purchase is on market. Option 3: Retain your shares: If you wish to retain your parcel of shares you need to notify Allied Farmers in writing by requesting and completing an opt-out form. The form can be requested from our Share Registry, Link Market Services, from 5 January 2016. You can request the form by email: [email protected], or fax (09) 375 5990, or in writing to Link at, PO Box 91976, Auckland 1142. Please specify your CSN / holder number on all correspondence. (Your CSN / Holder number can be found at the top of the letter). Once received, please complete the form and return this to Link Market Services to be received no later than 18 March 2016. Link Staff will be available from 5 January 2015 to answer any questions that you may have on the share sale. Yours sincerely Garry Bluett Chairman 18 December 2015 End CA:00275464 For:ALF Type:S/HOLDER Time:2015-12-21 10:21:10
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Ann: S/HOLDER: ALF: Sale of small shareholdings
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